11/17/2025

Company Holiday Party Considerations

Examine pay, safety and inclusivity

HR Question: Thinking about your company holiday party? Here's what you need to know about pay, policies and inclusivity.

HR Answer: The holiday season is just around the corner, bringing with it a variety of parties and events that celebrate this festive time. These gatherings are also opportunities to express gratitude to employees, recognize their hard work and strengthen team bonds. In today's job market, where retaining employees is crucial, holiday events can add some cheer to a stressful time, demonstrate an organization's appreciation and commitment and engage staff members—sometimes including their families. However, several important factors must be taken into account when sponsoring such events to ensure positive outcomes and mitigate potential risks.

Compensation – Voluntary vs. Mandatory Event and FLSA Status

In general, employers are not required to pay employees if the company holiday party is considered voluntary and takes place outside of regular working hours. Holiday parties scheduled during the regular workday should be compensated. If the employer requires all employees to attend an event outside of regular working hours, then it may be considered work time, and employees should be compensated for attendance.

Please select this link to read the complete article from Clark Schaefer Strategic HR.